The much more expensive option also has a PC appropriate 500GB drive and 4GB of memory, while the cheap Android-book has a predictable 16GB of useless storage, and 2GB of memory. And despite the nice resolution, it has a smaller-than-netbook sized 10.2" display, which is going to cramp up the keyboard, and be very difficult to do productivity work without a connected monitor - which to me makes the nice resolution completely moot, as the device itself is useless as a laptop.
And did they say, "an extra battery that could nearly double the tablet's battery life to somewhere north of eight hours..." OMG. So this Tegra 4 laptop has only 4 hours of battery life with a single battery?
By the way, it's also true that 13x7 displays are becoming inappropriate for nearly any configuration, let alone something priced at $799 - but HP's problem seems to be that both platforms here are DOA. It's just that the Tegra 4 system is unusable for different reasons.